The euro climbed above to above a one-month high on Wednesday following the release of the first exit poll from the Dutch parliamentary vote. EUR/USD rose to 1.0740 on Wednesday evening as Dutch Prime Minister Mark Rutte's VVD Party seems to have won the most seats in the parliamentary election.

Forex traders were concerned that a stronger showing by Geert Wilders' populist party would increase anti-EU sentiment in the euro zone, ahead of key elections in France and Germany later this year.

The greenback suffered heavy losses against its major rivals on Wednesday after the Federal Reserve hiked interest rates as widely expected but signaled a more gradual pace of monetary tightening this year than many market participants believe.

The dollar dropped to a five-week low against the euro, was at a four-week trough against the Swiss franc and a two-week low versus the yen and sterling.

The Fed on Wednesday raised its overnight interest target rate by 25 basis points to a range of 0.75 percent to 1.00 percent.

In its policy statement, the Fed said further rate increases will only be 'gradual', with policymakers sticking to their outlook for two more rate hikes this year and three more in 2018.